POWERCHINA
SPEM LIMITED COMPANY, a company incorporated in the Peoples Republic of China having
its registered address at 80 Hangdu Road, Shanghai, China 201316 (“SPEM”)

Collectively
referred to as the “Parties”

WHEREAS

(1)

PGTC
owns the rights to patented emission control systems including ENVI-Clean TM;

(2)

PGTC
and SPEM have entered into a joint venture partnership to market, fabricate and install
ENVI-CleanTM emission control technologies in the Peoples Republic of China;

(3)

The
parties have agreed that tooling for pending projects should be undertaken in advance
of orders to facilitate shorter delivery times.

IT
IS AGREED

1.

DEFINITIONS AND INTERPRETATION

1.1

The following terms shall have the following meanings:

Term

Shall mean the term of this Agreement described in Clause
2;

Force
Majeure

Shall mean any event affecting the performance of any
provision of this Agreement arising from or attributable to acts, events, omissions or accidents which are beyond the reasonable
control of a party including, without limitation, any abnormally inclement weather, flood, lightning, storm, fire, explosion,
earthquake, subsidence, structural damage, epidemic or other natural physical disaster, failure or shortage of power supplies,
war, military operations, riot, crowd disorder, strike, lock-outs or other industrial action, terrorist action, civil commotion
and any legislation, regulation, ruling or omissions of any relevant government, court or any competent national or international
authority;

1.2

The singular includes the plural and vice versa.

1.3

The clause headings do not form part of this Agreement
and should not be taken into account in its construction or interpretation.

1.4

References in this Agreement to the Schedule are to
the Schedule to this Agreement.

2

2.

TERM AND APPOINTMENT

2.1

This Agreement shall have effect for one year from the
date of the Agreement.

2.2

The Agreement and its terms may be extended and amended
by mutual agreement of the parties.

3.

PAYMENT AND CONSIDERATION

3.1

The consideration for SPEM’s services, PGTC has
agreed to a fee of ¥RMB1,050,000 to be paid as US$160,198 on the 12 month anniversary of the acceptance of the system.

4.

ASSIGNMENT, CONFIDENTIALITY & SEVERABILITY

4.1

Neither party may assign any of its rights or obligations
under this Agreement without the prior written consent of the other party, such consent not to unreasonably withheld or delayed
providing that neither party is detrimentally affected by the assignment.

4.2

The parties acknowledge that the contents, in particular
the financial details of this Agreement are confidential and neither party will disclose any information concerning the terms
of this Agreement without the prior written consent of the other except as required by law or as reasonably necessary for the
operation of this Agreement.

4.3

Should any provision of this Agreement be considered
void or voidable under any applicable law, such provision shall to the extent required be severed or amended in such a manner
as to render the rest of this Agreement valid or enforceable, unless the whole commercial object is thereby frustrated.

5.

ENTIRE AGREEMENT AND WAIVER

5.1

This Agreement contains the entire agreement of the
parties with respect to the subject matter of this Agreement,

5.2

This Agreement may only be varied by the written agreement
of both parties,

5.3

A waiver by either party of a breach of any term or
condition of this Agreement in any one instance shall be in writing, and shall not be deemed as a continuing waiver or a waiver
of any subsequent breach unless so provided by written notice.

6.

FORCE MAJEURE

Should
either party’s obligations under this Agreement be materially hampered, interrupted or interfered with by reason of any
Event of Force Majeure, then the obligations of that party shall be suspended during the period of such hampering,
interference or interruption consequent upon such event or events and shall be postponed for a period of time equivalent to
the period or periods of suspension, and the parties will use their best commercial endeavors to minimize and reduce any
period of suspension occasioned.

7.

NO PARTNERSHIP, GOVERNING LAW & ANNOUNCEMENTS

7.1

Nothing contained in this Agreement shall be deemed
to alter the terms of the joint venture partnership between the parties.

7.2

This Agreement shall be governed by and construed in
all respects in accordance with the laws of the Peoples Republic of China and each party hereby submits to the exclusive jurisdiction
of Chinese arbitration or courts.

7.3

Neither party shall make (and the parties shall ensure
that no person connected with them shall make) any public statement, issuance or announcement about the signature of this Agreement
without the prior written approval of the other party except as required by law or by any legal authority.

3

SIGNATURE
PAGE

IN
WITNESS whereof the parties have duly executed this Agreement the day and year first above written.